Month: October 2017

Three victories for the Audi RS 3 LMS: Andy Yan from Team New Faster Racing managed an impeccable weekend in the TCR China. The local campaigner remained unbeaten in his Audi RS 3 LMS in the fourth event at Ningbo in all three races. As a result, he has clinched six victories in the current season to date and is leading the standings before the finale at Guangdong on December 31. His teammate, Huang Chu Han, completed the result with two third places. Deng Bao Wei from Team Leo 109 Racing as the runner-up in round two contributed another podium finish for the Audi RS 3 LMS.

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“With this robust performance, achieved amid a difficult environment, we are optimistically tackling the tasks that lie ahead,” says Rupert Stadler, Chairman of the Board of Management of AUDI AG. “We are launching the biggest model initiative in our history and at the same time we are preparing every area of the Company for the age of electric propulsion and autonomous driving. And, with a far-reaching program of measures, we are streamlining costs and tapping new revenue potential. This is underpinning our profitability targets also with regard to future mobility.”

The program of measures will accelerate Audi’s strategic transformation by increasing the financial leeway for future technologies such as electric mobility. The coming year will already witness the launch of the Audi e-tron, the brand’s first all-electric volume model, with a range of more than 500 kilometers. Audi will offer its customers over 20 different electrified models by 2025, around half of which will have all-electric drives. To that end, the Company is planning to prepare all plants for the production of electric cars.

Three quarters into the current fiscal year, revenue and operating profit for the Audi Group are each on a par with the prior-year figures – despite a slight dip in cumulative deliveries since the start of the year. The Group’s revenue for the first three quarters amounts to €44,235 million (2016: €44,017 million). €3,941 million operating profit compares with a prior-year figure before special items of €3,918 million. Taking into account the risk provisioning item created in the prior-year period in connection with the diesel issue and potentially faulty airbags made by Takata, the operating profit after special items at the end of Q3/2016 had been €3,033 million.

Following a clear drop in sales at the start of the year, the Audi Group is now back on its course of growth and has seen deliveries of its core brand rise every month since June. Cumulatively, however, it still falls short of the prior-year figure with 1,380,778 (2016: 1,408,828) automobiles of the Audi brand handed over to customers. Higher depreciation resulting from the expansion of the international production network and of the model and technology portfolio also negatively impacted profit. On the other hand, the year to date has brought positive effects from the successful launch of new models such as the A5 family and the Q2, as well as from currency management. The robust financial performance also reflects achievements from adopted efficiency measures, for example in the form of lower distribution costs.

At the end of the third quarter, the operating return on sales of 8.9 (2016 before special items: 8.9) percent is within the target corridor of 8 to 10 percent.

“This prepares us well for a challenging fourth quarter in which upfront expenditures for our imminent model initiative will have a more noticeable impact,” says Alexander Seitz, Board Member for Finance, IT and Integrity at AUDI AG. “We will pursue our chosen path all the more decisively because on the product side, following the new-generation A8 and A7 we will even be upping the pace next year, starting the production of a new Audi model at the rate of one every three weeks.”

The Audi Group’s profit before tax increased to €4,054 million after three quarters (2016: 2,839 million). Alongside the special items affecting the prior-year figure, a substantially improved financial result is behind this growth. Among other factors it results from a positive effect of €183 million on income from investments accounted for using the equity method following the entry of a new investor in the HERE mapping service in the first quarter.

In the period from July through September, the brand with the four rings delivered 471,826 (2016: 455,535) automobiles. Group revenue climbed to €14,092 (2016: 13,883) million in the third quarter, and the operating profit to €1,261 (2016 before special items: 1,252) million. The corresponding quarter of the previous year had seen the Company increase its risk provisioning by €620 million in connection with the diesel issue; the operating profit after special items for that 2016 period correspondingly came to €632 million. For the third quarter of 2017 the operating return on sales reached 8.9 (2016 before special items: 9.0) percent.

The Audi Group’s net cash flow after three quarters remains below the prior-year figure at €2,489 (2016: 3,086) million due to anticipated payments in connection with the diesel issue.

For full-year 2017, the Audi Group continues to expect an operating return on sales within the strategic target corridor of 8 to 10 percent. The Company anticipates slight rises in Audi-brand deliveries and Audi Group revenue.

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With an international Media Talk attended by athletes and coaches from 15 partner nations Audi gave the unofficial starting signal to the new World Cup season the day before the first race in Sölden. Key topic was the brand’s accord with the FIS (Fédération Internationale de Ski) to extend the agreement as name-giver to the Audi FIS Ski World Cup up to and including the 2021/2022 season.

“We are delighted to announce the extension of a long and successful partnership on the occasion of the opening event of this Olympic season,” says Thomas Glas, Head of Sports Marketing of AUDI AG. “As a result, Audi remains and will continue to remain one of the key partners of international winter sports in the coming years. Our role as name-giver to the World Cup is no doubt one of the highlights of our comprehensive commitment.”

In the first giant slalom in Sölden, the athletes will begin the new season, the highlight of which will be the Olympic Games in South Korea in February. The starting point of the races on the Rettenbach Glacier will be the Audi start house – a distinctive symbol of the successful partnership that commenced 15 years ago in the 2002/2003 season.

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Following the end of a pilot phase with around 70 contract partners, another 200 Audi dealers offering their range of used cars via this new sales channel are expected in early 2018.“It is important for us to have a digital solution that covers all the steps from start to finish and from which dealers and customers stand to gain equally,” says Martin Wallenborn, Head of Digitalization Sales Germany, “For Audi partners online sales are a useful addition to dealership outlets. For the first time, customers can complete all the steps involved in the car purchase, including finance, conveniently, simply and securely online.”

The new online sales can be accessed via participating dealers’ websites and the central Audi used-car exchange www.audi-gwplus.de. Here the customer can choose their desired Audi from the qualified range of Approved :plus partners – and do so irrespective of the car’s particular location. What is new is that the buyer can have the car delivered through the Audi partner to wherever and whenever they like in Germany. With a click, the customer can also arrange beforehand to have the Audi partner register the vehicle with their desired license plate.

If the customer is looking for finance, a creditworthiness check, loan decision and drafting of the finance agreement are completed in real time. The customer also has full flexibility to decide at the end of the term whether to give back the automobile for a fixed residual value or whether they would like to continue financing the vehicle afterwards. The customer also has the added benefit of a five-year warranty with the Approved :plus models.

Regarding the payment Audi uses e-commerce methods to build up a completely digital solution as part of Audi Bank finance. As such, the customer completes the entire sales process digitally in a few minutes. The dealer or Audi customer service are on hand to answer any queries. The customer can also of course still arrange a personal consultation in the dealership.

The online platform has been developed as part of the extensive campaign to create the digital dealership – as a joint, agile project between Audi, dealerships and Audi Financial Services. “By involving all project partners from the outset, we managed to integrate the requirements directly and practically into the project,” confirms Martin Wallenborn. “The result is a practical, intuitive platform for customers and dealers.” An upgrade to the sales portal with other additional services, service products and functions as well as integration of more partners is performed successively.

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End-of-the-season podium: Phoenix Racing finished the 2017 endurance racing season with a podium finish on its own doorstep. The team based in Meuspath achieved third place in round nine of the VLN Endurance Championship Nürburgring. The two Germans Christian Mamerow and Frank Stippler shared an Audi R8 LMS with Dutchman Robin Frijns on the Nordschleife. In the standings, Team Montaplast by Land-Motorsport is the best Audi outfit. Following last year’s victory in the VLN Speed Trophy, Wolfgang Land’s squad achieved second place this season.

Audi Sport customer racing

Test day in Neuburg an der Donau: Current and prospective customers got to know the entire model range of the customer sport program in Neuburg, Audi Sport customer racing’s headquarters. From October 19 to 21, numerous guests used the opportunity to familiarize themselves with the Audi R8 LMS GT3, the R8 LMS GT4 and the RS 3 LMS. The test days provided information and background on fielding options and the brand’s service offering up to and including driving opportunities on the handling course. “We offered this event in Neuburg for the first time,” said Chris Reinke, Head of Audi Sport customer racing. “National and international race drivers and team owners, even including a guest from Hong Kong, took advantage of this opportunity and made this event a success.”